deduction of interest on loan for construction in house prop

 please reply..

:)

m confused

Since it is Self Occupied Property, the person can claim interest upto 30000 p.a  u\s 24(b). Any how that person can claim Rs.1,50,000 ( interest paid must exceed 1,50,000) as deduction if the following conditions are satisfied :-

• The purpose of loan is for acquisition or construction of house
  
• The loan is taken from approved financial institutions.
  
• The loan was borrowed after 01-04-1991
  
• If the loan was taken for construction of house, the construction must be completed within 3 years from date of borrowal of loan.
  

When it comes to the interest which you have paid during the constrcution of house, such amount of interest can be claimed as Pre-Construction Interest for 5 years. The amount qualifying as interest as pre - construction shall be, interest from the date of borrowal till the preceding financial year in which the construction of house was completed.

It is allowed upto Rs 150 000 for each part.

Both of them can Claim rs 150000 respectively  U/s-24(b)

CA rakesh

New Delhi

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